US: Cooper decides to skip bid to recover $112 million from India’s Apollo image

The Findlay, Ohio-based Cooper announced that back on December 16 it decided to stop trying to get back $112 million in fees from Apollo Tyres after the attempted takeover of the latter was torpedoed by Cooper’s Chinese tire partner.

The US tiremaker decided to drop a lawsuit, filed in state court in Delaware, which aimed to make Apollo pay a $112 million breakup fee from the Gurgaon India-based company, after the attempt to secure a $2.5 billion deal failed – read court fillings in which Apollo also decided to divest its counterclaims. The decision could end at least two years of contentious litigation between the two, following Apollo’s $35-per-share offer for Cooper, which could have translated into the largest purchase of an auto-parts maker since 2007.

Apollo’s purchase of Cooper was announced back in June 2013, but immediately after – the latter’s Chinese affiliate, Chengshan Cooper Tires – took over the local plant and denied tire production, the release of financial records or even visits from the US officials. The breakdown of the Chinese operations was cited as a major obstacle for the deal to go through and Cooper executives said back in December 2013 the sell offer to Apollo would be dropped on lack of financing, with the Indian manufacturer also offering less than the agreed $35 a share following the Chinese trouble.

Via Bloomberg